North CarolinaHB 4762025-2026 SessionHouseWALLET

AN ACT MAKING TECHNICAL CORRECTIONS AND ADMINISTRATIVE CHANGES TO THE LAWS GOVERNING AND RELATED TO THE DEPARTMENT OF STATE TREASURER.

Sponsored By: Carson Smith (Republican), Diane Wheatley (Republican)

Signed by Governor

ATTORNEYSBOARDSCHARTER SCHOOLSCJRSCORPORATIONS, NONPROFITCOUNCIL OF STATEDISABLED PERSONSEDUCATIONELEMENTARY EDUCATIONFEESGENERAL ASSEMBLYHEALTH SERVICESINTERSTATE COOPERATIONJUDGESLGERSLOCAL GOVERNMENTLRSMAGISTRATESMUNICIPALITIESOCCUPATIONSPRESENTEDPUBLICPUBLIC OFFICIALSRATIFIEDRETIREMENTSALARIES & BENEFITSSECONDARY EDUCATIONSOCIAL SERVICESSTATE EMPLOYEESSTATE TREASURERTEACHERSTSERSTSERS BOARDCHAPTEREDLGERS BOARDGOVERNMENT EMPLOYEESLOCAL GOVERNMENT EMPLOYEESABLE PROGRAM BOARD

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Bill Overview

Analyzed Economic Effects

10 provisions identified: 2 benefits, 3 costs, 5 mixed.

Pensions restored after pardon, with repayment

If you receive an unconditional pardon or your conviction is vacated, the retirement board can restore your service credit and benefits. To get them back, you must repay, in one lump sum, all contributions you were paid under the forfeiture. Interest is added at 6.5% per year, compounded annually, from the year of forfeiture to the year you repay.

Longer State Health Plan coverage for children

An eligible surviving dependent child can stay on the State Health Plan until age 26 if the child was covered when the covered person died or was covered on September 30, 1986. A dependent certified as incapacitated can stay covered with no age limit. This takes effect June 26, 2025.

Earnings cap for reemployed state retirees

If you retire and return to work for a participating employer, your pension stops once your pay goes over the greater of 50% of your last 12 months’ pre‑retirement pay or $20,000. The $20,000 amount and the 50% test rise each January 1 by the positive change in the December CPI. The stop starts the month after you cross the limit and runs through December; going over in December does not stop payments. Your pension restarts on January 1. Employers must report your terms and monthly pay within 90 days after each month you work.

Stronger local finance oversight and training

Starting June 26, 2025, the Local Government Commission can require cities, counties, and public authorities with deficiency letters or audit control problems to hire outside help. The Commission can also require finance officers or staff to complete training when there is intervention, a deficiency letter, audit weaknesses, or the officer fails yearly qualifications. City and county managers must complete at least six hours of education within six months after the Commission acts or issues a deficiency letter.

Legislative retirement: early and survivor changes

If you retire between ages 50 and 60 with at least 20 years of service, your benefit is reduced by the percentage set in G.S. 135‑5(b21)(2). If a member dies in service after age 60 and with five years of service, or after completing 12 years of service, the principal beneficiary can take Option 2. If that beneficiary dies before payments equal the member’s contributions, the extra is paid in a lump sum to the named contingent beneficiary or that person’s legal representative. If no beneficiaries are alive when payment is due, the lump sum goes to the principal beneficiary’s legal representative. These rules take effect June 26, 2025.

UNC Health and ECU staff keep retirement

Employees of UNC Health Care System, the Medical Faculty Practice Plan, and ECU Dental School Clinical Operations who worked and were in a retirement plan before January 1, 2024 keep the same Retirement System or Optional Retirement Program membership. The earlier one‑time option to stop membership is removed. This requirement starts June 26, 2025.

Medicaid claims rarely hit ABLE accounts

The State does not file a Medicaid repayment claim against a North Carolina ABLE account unless federal law requires it. If a claim is required after a beneficiary dies, the State files with the State Treasurer within 60 days of notice. ABLE applications must explain this limit. DHHS and the State Treasurer share data to make this work.

Fee for out-of-state attorney appearances

Out‑of‑state attorneys who appear in North Carolina courts or administrative hearings pay a $225 fee with the motion. The clerk or agency sends $200 to the Administrative Office of the Courts and $25 to the State Bar.

Charter schools’ path into state retirement

Charter schools can stay in provisional retirement entry for up to three years and can apply for full participation at any time. Applications after the first year must include financial statements and an independent audit; without these, entry is denied. The Board may accept an application contingent on a sound audit. Participation ends the first of the month after the provisional period ends or if the application is denied. The Board can also let the State Treasurer handle applications, and schools may be told to file with the Treasurer’s designee.

Retirement board timing and 0.01% set-aside

The Governor names eight specific types of members to the retirement board on April 1 in gubernatorial election years, or soon after. If a designated member leaves the tied job, the Governor names a replacement until the next regular date. The Board may set aside up to 0.01% of required contributions in a separate fund to carry out cost‑saving changes or prevent IT and operations disruptions. No employer contributions can be directed to this fund after January 1, 2035. These changes take effect June 26, 2025.

Sponsors & Cosponsors

Cosponsors

Bill Ward
Republican • House
Shelly Willingham
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 266 • No: 4

House vote • 6/17/2025

HB 476: Department of State Treasurer Technical Corrections/Administrative Changes

Yes: 112 • No: 1 • Other: 6

Senate vote • 6/11/2025

HB 476: DST Technical Corrections/Admin. Changes 2025.-AB

Yes: 44 • No: 0 • Other: 6

House vote • 4/29/2025